- Sponge iron transactions volumes rise d-o-d
- Improved demand seen for finished steel
BigMint’s billet index went up by INR 200/tonne (t) to INR 44,350/t exw-Raipur on 14 May, 2024.
The index experienced an increase today, buoyed by positive demand dynamics in both the semi-finished and finished steel markets. Improved transaction volumes in sponge iron and finished steel helped support overall buying activity, indicating a strengthening market sentiment throughout the day.
On 14 May, there were over 3,200 t of deals, against about 2,100 t on 13 May.
Rebar prices in the finished steel market increased by INR 200/t with 5,000 t of transactions registered. Furthermore, prices of wire rods were up by INR 200/t, with total transactions of 4,650 t noted. Sponge prices lifted up by INR 50/t.
The conversion spread from sponge iron (PDRI) to billets for the standalone furnaces in the region was recorded at INR 15,100/t.
Rationale –
This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.
- Transactions (T1) – Six trades at INR 44,000-44,400/t were recorded during the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 44,376/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Eleven offers reported in the trading window and considered as T2 inputs. The average price of these eleven was INR 44,325/t and given a 50% weightage in the final price calculation.
The final price for billet exw Raipur was at INR 44,350/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
